By BERNAMA
Malaysia Airports Holdings Bhd has issued the certificate of non-completion to UEMC-Bina Puri JV, the contractor for the main terminal building of klia2, for their inability to complete the work by the approval deadline of June 15, 2013.
“The liquidated ascertained damages (LAD) of RM199,445.40 per day is hereby invoked beginning yesterday,” said MAHB in a filing to Bursa Malaysia today.
MAHB said the move comes after its announcement on May 29 that it would impose LAD on klia2 contractors and any other recourse available to the company under the contract.
Under the construction contract, a contractor is obliged to complete the works on time and if he failed to do so is liable to pay damages for breach of contract.
Early this month MAHB had confirmed delays in the opening the new low-cost carrier terminal, scheduled for June 28, after taking into account several key quality and safety issues.
– Bernama
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